American Express

Annual Meeting: May 5, 2020

The Chairman and CEO of American Express, Stephen Squeri, received $23,796,002 in compensation in 2019. This represents a 37% increase from the $17,341,442 he made in 2018. The company’s adjusted annual profit increased only 12% from last year.

The biggest year-over-year changes in Squeri’s compensation came from his bonus, stock awards, and option awards. His bonus went from $5,850,000 to $7,000,000. His stock awards went from $5,999,903 to $10,318,663. And his option awards went from $1,499,996 to $2,439,992. Squeri’s perquisites have also increased generously. In 2017, Squeri’s perquisites totaled $101,831. They reached $304,329 in 2019. The benefits include use of the company aircraft, home security, and company “tickets for sporting and entertainment events for personal rather than business purposes.”

Squeri takes full advantage of his compensation committee’s magnanimity. From 2018 to 2020, Squeri exercised options worth 172,415 shares valued at $9,170,541. He also vested 205,605 shares worth $19,730,999 in the same period. Yet, somehow, he only holds 6,985 more shares of his company’s stock in 2020 than he did in 2018. Like his predecessor, his equity awards are “factors in wealth accumulation rather than alignment.”

American Express did make some changes to their compensation plan in response to shareholder feedback. In their proxy, they note that they eliminated the unpopular “Portfolio Grant (long-term cash) program in 2019 and transitioned target award values to 100% equity tied to Company and stock performance for Named Executive Officers (NEOs).”

American Express workers make a median pay of $64,803 per employee; the pay ratio of CEO to employee is 367:1.